I called my buddy, past Pres of the trustee's industry association, UTA, and ran our scenario by him.
As I thought, without having the EXACT facts, this explanation will only take you so far.
It depends! I love saying that because it's so realistic, but rarely helpful.
True purchase money loans in CA are precluded from deficiency judgment. Now here's where it gets interesting:
Some acquisitions were structured with HELOC's and other financial instruments that "may" not really be contrued as purchase money, despite recording concurrently with primary 1stTD. They are often associated with a consumer account such as a checking, savings, credit card, etc. This appears to disqualify them as purchase money, however the concerned borrower ought to spend their own money or do their own homework as to this concern.
Also, BOC (BofA) hires 3rd party colllection agents who claim to be "with" the bank's collection dept. That's a common practise, although stretching the truth. They are paid to pursue debts still on the books. I don't recall the O.P. stating that a deficiency judgment action had, in fact, actually been taken, so this may just be aggressive collection practises. Compliant with FIRPTA? I dunno. However, absent an AJ, what are they going to do?
So, I would, as usual, consult an attorney qualified in consumer debt matters rather than speculate.
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